Indigo Agriculture, a Massachusetts-based agricultural technology corporation has teamed up with Corteva Incorporated, a seed and chemical company, on a new production contract project for farmers, “Carbon by Indigo”. Carbon by Indigo is a program that makes registry-issued agriculture carbon credits.
Carbon credit registries track how carbon emitters are performing in efforts to offset their carbon dioxide emissions. Industries usually offset their emissions through agriculture production or reforestation. Crops indirectly reverse the greenhouse effect by capturing and storing carbon dioxide gas in soils. Carbon credits are a system for estimating how much carbon is being sequestered in a given area of land.
Carbon Farming Business Model
The 267 paid growers currently participating in the Carbon by Indigo program must provide data about their growing progress and report crop production. Carbon pulled from the atmosphere by vegetation and soils is purchased by a variety of organizations for so-called carbo credits, which “offset” or cancel out their carbon emissions. This program has created a new opportunity for farmers to make money through carbon credit sales.
The purchase of carbon credits will surely go on to be implemented by organizations-both private and governmental-to achieve carbon neutrality or reduce their carbon footprint in the coming years. Starting in the crop year 2022, farmers in Michigan, New York, Alabama, Vermont, Pennsylvania, and Virginia will be able to farm carbon via Carbon by Indigo. Indigo Agriculture announced that it will expand the qualifications for farmers in 28 more states soon. The company believes that nearly 80% of farm acreage in the United States is viable for high-quality carbon farming.